The National Privacy Commission (NPC) said it has concluded its investigation on three major online lending companies in the country for alleged public shaming of borrowers and has found that their operators may be liable for imprisonment of up to seven years and fines of not more than P5 million under the Data Privacy Act of 2012 (DPA).

Photo shows NPC deputy commissioner Ivy Patdu (left) during the press briefing at the PICC. With her is privacy commissioner Raymund Liboro

“The
investigation determined that their business practice specifically targets the
privacy of persons, practically making a profit out of people’s fear of losing
face and dignity. These unethical practices simply have no place in a civilized
society and must stop,” Liboro said.

As
of July 31, the number of complaints filed against Fast Cash Global Lending, which
operates Fast Cash online app, has reached 166. Charges have been filed at the
NPC against its directors and board members Kellon De Jesus Manalastas, Tiancai
Huang, John Christian P. Sia, Jovy Co Ting, and Zichao Su.

The
number of complaints filed against Unipeso Lending Company, which operates
Cashlending online app, has reached 138. Charged before the NPC are its
executives Haolong Li, Guanqun Luo, Flordeluna Rosell, Rizza Mae Lorilla, and
Renyvic Duquiatan.

The
fact-finding reports gave the NPC sufficient grounds to establish that the
three lending companies have not complied with legal requirements for
processing personal data; failed to adhere to the principles of transparency,
legitimate purpose and proportionality; and committed unauthorized processing;
processing for unauthorized purpose; malicious disclosure; and unauthorized
disclosure.

“Report
found that the penalties inflicted on borrowers by these online lenders are
abusive. The public shaming they carried out, has caused anxiety, depression;
some have even lost jobs and feel they became unemployable, that their
reputation and future was put in jeopardy. The permanence of these damages is
disproportionate to the mere delinquency in paying debts, sometimes as low as
P1,000,” Liboro said.

The
NPC has ordered the executives behind the online lending apps 10 days upon
receipt of an Order to File an Answer, to explain before the agency the
allegations contained in the fact-finding reports. If the respondents failed to
do so without justification, the NPC would then make its final decision based
on available evidence and information provided in said reports.

Aside
from criminal prosecution, the NPC fact-finding team has also recommended
issuing a temporary or permanent ban on the processing of personal data by the
lending firms, as urgently required by public interest; as well as the issuance
of compliance orders against them.

Evident
from the complaints are common statements from data subjects conveying how
downloading these applications lead to a disruption in their lives and those of
others, in violation of individual rights and freedoms.

“We would like to caution the people on downloading mobile applications, particularly online lending applications. Please read the terms and conditions carefully, for it may include dangerous permissions such as access to your live location, phone books and social media accounts, and even camera control. Let us be responsible for our safety and the protection of our personal data,” Liboro said.

The
NPC said it intends to have the apps of the three online lending operators be
taken down from the Google Play Store. For this, the agency is now coordinating
with the Federal Trade Commission through the Cross-border Privacy Enforcement
Arrangement.

From
July 6, 2018, to July 31, 2019, the NPC received a total of 689 complaints against
several online lending applications. They comprise around 55% of the total
complaints filed with the NPC. This total number does not include around 2,666
similar concerns the NPC received via email and social media, which were not
filed as formal complaints. With these in consideration, the NPC on its own
initiative conducted the investigation.

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